The City of Augusta, located in Eau Claire County, had a successful Tax Increment Financing (TIF) District that facilitated the development of their industrial park.  All project costs were expected to be paid off in 2018. The City also had a desire to reconstruct and enhance a one-mile section of downtown Augusta (Lincoln Street – USH 12).

Lincoln Street (USH 12) in the City of Augusta was in poor condition. The existing water main was 8-inch asbestos cement main, more than 60 years old. The sanitary sewer was vitrified clay, which is prone to breakage, root intrusion, blockage and I/I. The City also experienced issues with the storm sewer, curb and gutter, sidewalks and street lighting. The City determined that it must undertake these sewer, water and street projects together for optimal cost-efficiency and affordability.

The City turned to MSA to look for funding options.  MSA met with City officials to explore options with their TIF District. The actual termination date for Augusta’s TIF District was in September of 2025 and MSA suggested that the City amend their TIF District to include projects within ½-mile of the District.  MSA conducted a thorough review of the District and formulated cash flow projections. The cash flow projections indicated that the District could generate approximately $3.5 million in additional revenue. The amendment of the TIF District to allow for additional projects, both within the existing boundary and within ½-mile of the District, was approved by the City Council and Joint Review Board in the fall of 2017.

With that newfound source of revenue, the City began the process of revitalizing their downtown.  MSA was retained to design the project and look for additional sources of loan and grant funding.  The reconstruction of Lincoln Street from Highway Street to East Street included the following improvements: reconstruction of the roadway with new aggregate base course and asphaltic pavement, reconstruction of the roadway with curb and gutter, reconstruction of storm sewer to collect and convey stormwater runoff from the project area, replacement of the existing sidewalk with an ADA-accessible sidewalk, replacement of the sanitary sewer main in the roadway and sewer laterals to the property line, replacement of the water main in the roadway and water services to the property line and replacement of the existing street lighting.

MSA looked at various loan and grant programs and focused on three different financing programs to fund the $4.2 million project. First, MSA was successful in obtaining a $500,000 Community Development Block Grant for Public Facilities (CDBGPF) grant for the City’s project. The City also made application to the Safe Drinking Water and Clean Water Fund Loan programs administered by the Department of Natural Resources. These loan programs assist in water system and sanitary sewer systems improvements and may also provide principal forgiveness (grant) funding.

The City received information indicating that they will receive $500,000 of principal forgiveness (grant) through the Safe Drinking Water Loan Program through the DNR to go along with their $666,819 of principal forgiveness through the Clean Water Fund Loan Program. In total, the City will be receiving $1,666,819 in grants for this project, with an interest rate on the Safe Drinking Water and Clean Water Loans ($2,470,434) at 0.99%.

By securing a robust level of grant funding, the City of Augusta is now moving confidently forward with this critical and much-anticipated road reconstruction project in the heart of their community.